GO Markets - FX Market Commentary

Better than expected economic data from the UK kept the Sterling well supported overnight rising to highs of 1.5450 against the greenback, but it has since retreated back though $US1.5400. UK Total Trade Balance came in better than expected recording a GBP2.1 Billion deficit in February against a previous GBP3.9 billion Deficit. Economists had estimated the trade deficit to widen to GBP 2.9 billion. The Goods Trade Balance also showed a narrowing deficit to GBP 6.2B in Feb from a previous GBP8.1B.In contrast, the US trade balance widened more than expected to US$39.7B against a previous deficit of US$37.0B – Economists had tipped the trade balance to US$38.9B. US Import Price Index recorded 0.7 growth in March against a previous contraction of 0.3 percent. This represents annual growth of 11.4 percent, just shy of the estimated 11.6 percent.We saw some reasonable support for Euro on the back of a successful capital raising Auction. Greece sold a total of 1.2 billion euros of six-month and one-year T-bills. Debt obligations due next month mean Greece has to find EUR11.5 billion and now intends to head to the States to sell bonds estimated to be worth between five and ten billion dollars. By default, mild support for the Euro help the Aussie regain composure after falling to overnight lows of 92.4 US cents. At the time of writing the local unit is buying 92.8 US cents.In terms of economic feedback we have Westpac Consumer Confidence data today; traditionally this is not market moving information. With the exception of a strong day in local equities, I think we can expect a reasonably subdued session for the local unit with key technical support around 92.45.